--- title: How to Use a Due Diligence Report [VIDEO] description: In this video, Brandon Raatikka walks through how to use a third party due diligence report while evaluating an alternative investment option. image: https://blog.factright.com/hubfs/Blog%20Images/Screen%20Shot%202017-08-04%20at%204.13.35%20PM.png --- behance bloglovin dribbble email facebook flickr github gplus instagram linkedin medium periscope phone pinterest rss snapchat stumbleupon tumblr twitter vimeo xing youtube - [Facebook](https://www.facebook.com/FactRightLLC/) - [Twitter](https://twitter.com/factright) - [Linkedin](http://www.linkedin.com/company/395017?trk=tyah) - [Phone](tel:866-357-7779) [Report Center Login >](http://www.factrightreports.com/Account/Login) - [Home](http://www.factright.com/) - [ABOUT US](http://www.factright.com/team/) - Financial Advisory Firms - [FR Risk Management](http://www.factright.com/fr-risk-management/) - [Report Center](https://www.factright.com/resources/report-center/) - [Product Coverage](https://www.factright.com/resources/list-of-coverage/) - Product Sponsors - [Due Diligence Reporting](http://www.factright.com/due-diligence-reporting/) - [Preparing for FactRight Diligence](https://www.factright.com/preparing-for-factright-diligence/) - [Resources](https://www.factright.com/resources/) - [Report Center](https://www.factright.com/resources/report-center/) - [FactRight Webinars](https://www.factright.com/resources/webinars/) - [FAQs](https://www.factright.com/resources/faqs/) - [Events](https://www.factright.com/events/) - [Weekly Updates](https://www.factright.com/weekly-updates/) - [FactRight Blog](https://blog.factright.com/) - [Contact](http://www.factright.com/contact/) # How to Use a Due Diligence Report \[VIDEO\] August 04, 2017 by [Brandon Raatikka](https://blog.factright.com/author/brandon-raatikka) In this video, Brandon Raatikka walks through how to use a third party due diligence report while [evaluating an alternative investment option](https://blog.factright.com/alternative-investment-due-diligence-beyond-the-numbers).  ## #1: Who stands behind the investment? Use the report to get a sense of who stands behind the investment program. After all, the relationship you are entering into is as important as the structure of the deal itself.  ## #2: How does the analyst assess the offering?  Pay particular attention to how the analysts who have prepared the report have assessed the offering information provided by the sponsor and how they put that information into broader context. For instance, does the report opine on whether the structure is customary? What does the report say on the amount and the nature of the fees? Are they in line with similar programs?  Due diligence reports should use independent data to further assess the offering which may either corroborate the sponsor's disclosures or else call them into question. ## #3: Identifying risk through due diligence Ultimately what you want to get out of a due diligence report is a thorough understanding of the factors that will affect whether the program meets it's investment objectives. After all, the [key risks will be related to all of those factors](https://blog.factright.com/understanding-and-improving-your-risk-management-process).  The due diligence report should identify any serious red flags related to the execution of the deal or the investment strategy. If you use a due diligence report in these ways, it will become a critical aid in your investment decision making.  [![New Call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/2777169/04a19545-0390-425c-a9ce-377ac4378493.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/2777169/04a19545-0390-425c-a9ce-377ac4378493) [FactRight Takes Salt Lake City](https://blog.factright.com/factright-takes-salt-lake-city) [Navigating the Cap Rate Landscape: How Real Estate Cap Rates Relate to Real Interest Rates](https://blog.factright.com/navigating-the-cap-rate-landscape) [FINRA Regulatory Notice 23-08: Building on Regulatory Notice 10-22 to Develop More Robust Due Diligence of Private Placement Offerings](https://blog.factright.com/finra-regulatory-notice-23-08) [Not All Units Are Created Equal in Broker-Dealer and RIA-Distributed Investment Programs](https://blog.factright.com/not-all-units-created-equal) Filed Under: [Due Diligence](https://blog.factright.com/topic/due-diligence) ### Get Blog Notifications ### categories - [Due Diligence (85)](https://blog.factright.com/topic/due-diligence) - [Best Business Practices (39)](https://blog.factright.com/topic/best-business-practices) - [Alternative Investments (32)](https://blog.factright.com/topic/alternative-investments) - [Real Estate (29)](https://blog.factright.com/topic/real-estate) - [About FactRight (27)](https://blog.factright.com/topic/about-factright) - [REITs (27)](https://blog.factright.com/topic/reits) - [Best Practices (24)](https://blog.factright.com/topic/best-practices) ### Archives - [April 2026 (1)](https://blog.factright.com/archive/2026/04) - [March 2026 (1)](https://blog.factright.com/archive/2026/03) - [January 2026 (1)](https://blog.factright.com/archive/2026/01) - [September 2025 (1)](https://blog.factright.com/archive/2025/09) - [March 2025 (1)](https://blog.factright.com/archive/2025/03) - [October 2024 (1)](https://blog.factright.com/archive/2024/10) - [May 2024 (1)](https://blog.factright.com/archive/2024/05) - [March 2024 (1)](https://blog.factright.com/archive/2024/03) - [November 2023 (1)](https://blog.factright.com/archive/2023/11) - [September 2023 (1)](https://blog.factright.com/archive/2023/09) - [August 2023 (1)](https://blog.factright.com/archive/2023/08) - [June 2023 (2)](https://blog.factright.com/archive/2023/06) - [March 2023 (1)](https://blog.factright.com/archive/2023/03) - [February 2023 (1)](https://blog.factright.com/archive/2023/02) - [January 2023 (1)](https://blog.factright.com/archive/2023/01) - [December 2022 (1)](https://blog.factright.com/archive/2022/12) - [November 2022 (1)](https://blog.factright.com/archive/2022/11) - [October 2022 (1)](https://blog.factright.com/archive/2022/10) - [September 2022 (1)](https://blog.factright.com/archive/2022/09) - [August 2022 (1)](https://blog.factright.com/archive/2022/08) - [July 2022 (2)](https://blog.factright.com/archive/2022/07) - [June 2022 (1)](https://blog.factright.com/archive/2022/06) - [May 2022 (1)](https://blog.factright.com/archive/2022/05) - [April 2022 (2)](https://blog.factright.com/archive/2022/04) - [March 2022 (2)](https://blog.factright.com/archive/2022/03) - [February 2022 (2)](https://blog.factright.com/archive/2022/02) - [December 2021 (2)](https://blog.factright.com/archive/2021/12) - [November 2021 (1)](https://blog.factright.com/archive/2021/11) - [October 2021 (1)](https://blog.factright.com/archive/2021/10) - [September 2021 (1)](https://blog.factright.com/archive/2021/09) #### Contact FactRight, LLC 7500 Flying Cloud Drive, Suite 755 Eden Prairie, MN 55344 Call Today: (612) 284-6150 [http://www.factright.com/](http://www.factright.com/)[info@factright.com](mailto:info@factright.com%20target=)   #### FactRight Report Center Independent risk assessment and third party due diligence reports. **[Log In >](http://www.factrightreports.com/Account/Login)** #### Looking for Something? - [Facebook](https://www.facebook.com/FactRightLLC/) - [Twitter](https://twitter.com/factright) - [Linkedin](http://www.linkedin.com/company/395017?trk=tyah) - [Phone](tel:866-357-7779) Copyright © 2019 · [FactRight, LLC](http://factright.suiportal.com/) · [DISCLAIMER](http://www.factright.com/disclaimer/)